ADINARAYANA CORPORATION Vs. COMMERCIAL TAX OFFICER ANAKAPALLE

JUDGEMENT

(1.) In this batch of writ petitions, the main question that arises for consideration is whether the Deputy Commissioner of Commercial Taxes, Visakhapatnam, has permitted the petitioners to pay the sales tax assessed in two or more instalments within the meaning of section 16(2) of the Andhra Pradesh General Sales Tax Act (hereinafter referred to as "the Act"), and whether, if he has granted such instalments, he can withdraw the same without issued any notice to the parties.

(2.) The petitioners herein are commission agents dealing in jaggery, advancing amounts to ryots for raising sugarcane crop and recovering the amounts advanced by adjusting the considerations received on sale of jaggery through their agents. It is their case that, on account of a slump in the market, they suffered huge losses and the ryots could not realise the amounts due to them and repay the amount advanced. In those circumstances, although they were assessed to pay sales tax on their turnover, they were not in a position to pay the same. In respect of the turnover relating to the assessment years 1980-81 and 1981-82, they made representations to the Commissioner of Commercial Taxes and to the Government to permit them to pay the tax in instalments. The Government, in its Memorandum No. 2771/S1/81-4 dated 22/07/1982, while forwarding the representations to the Commissioner of Commercial Taxes, requested him to allow the petitioners to pay the arrears of sales tax relating to 1980-81 and 1981-82 due as on 1/07/1982, in six half-yearly equal instalments commencing from August, 1982. The Commissioner of Commercial Taxes, in turn, forwarded the memorandum of the Government and the representations forwarded to him by the Government to the Deputy Commissioner of Commercial Taxes through his letter No. LIII(1)3365/81 dated 26/07/1982, for taking necessary action to realise the arrears of sales tax relating to 1980-81 and 1981-82 in six half-yearly equal instalments commencing from 1/08/1982. The Deputy Commissioner of Commercial Taxes, having received the said representations made by the petitioners and the copy of the memorandum of the Government referred to above, addressed a letter in RC. No. 2288/76/A8 dated 3/08/1982, to the Commercial Tax Officer, Anakapalle, "to realise the balances for 1980-81 and 1981-82 in six half-yearly instalments commencing from 1/08/1982". The Deputy Commissioner further requested him "to submit a detailed report regarding the said balances and the amount of instalments along with particulars of due date and date of realisation". Acting on the orders of the Deputy Commissioner, the Commercial Tax Officer proceeded to realise the arrears of sale tax due from the petitioners in eight half-yearly equal instalments. Five such instalments have been realised from the each of the petitioners and the balance of three instalments was due and payable. While so, the Commercial Tax Officer directed the petitioners by his notice dated 12/06/1983, to pay the entire arrears of sales tax for the years 1980-81 and 1981-82 by the evening of 13/06/1983, i.e., the very next day. It was also stated in the said notice that no further time would be granted. The notice was served on the petitioners on the afternoon of 13/06/1983. Apprehending that pursuant to the said notice the Commercial Tax Officer and his subordinates would take drastic action to realise the arrears of sales tax due and resort to coercive methods, the petitioners have invoked the jurisdiction of this Court under article 226 of the Constitution of India for the issue of a writ of mandamus restraining the respondents from proceeding further pursuant to the impugned notice.

(3.) The sales tax assessed and found due is payable by a dealer within such time, not being less than fifteen days from the date of service of the notice of assessment as laid down in section 16(1) of the Act. Sub-section (2) of section 16, however, empowers the Deputy Commissioner to permit payment of the tax due in instalments. The said provision reads as follows :